RAMSEY CROOKALL & CO
May 31st 2012
Evening Report
The FTSE 100 closed up 9 points at 5306 to post a 7.7% decline for May, its worst
monthly performance since October 2008. The index gives up earlier gains after
disappointing data releases from the US, notably a downbeat Chicago PMI print.
Ongoing concerns in the euro zone did not help either. Investors will focus on
US nonfarm payrolls tomorrow at 12:30.
Holiday Inn and Crowne Plaza owner InterContinental Hotels Group climbed to the
top spot on the back of M&A speculation, with an analyst at Numis earlier this
week speculating about a possible tie-up with sector peer Marriott. More fuel
was added to the rumours today after activist investor Nelson Peltz declared a
4.27 per cent stake in IHG held through Trian Fund Management; Peltz is known
to build interests in companies to push through change (he is said to have been
instrumental in the Cadbury-Schweppes demerger).
Meanwhile, insurance group Admiral was a heavy faller after the Office of Fair
Trading said it would refer the private motor insurance market to the Competition
Commission, "after it found evidence that insurers compete in a dysfunctional way
that may push up premiums for drivers by £225m a year."
Logica rocketed 65 per cent early on after news of an agreed bid from Canada's CGI
Group. Information technology and business process services provider CGI is
offering 105p cash per Logica share, valuing the company at around 1.7bn pounds.
Heading the other way was car and bike parts retailer Halfords after it reported
a 20% drop in full-year pre-tax profit, warning that retail sales in the 2013
fiscal year have so far been very disappointing.
THE FTSE 100 closed Up 9 @ 5,306
THE DOW JONES @ 17:00 Down 54 @ 12365
THE NASDAQ @ 17:00 Down 23 @ 2814
Exchange Rates
GBP – USD @ 17:00 1.5400
GBP - EURO @ 17:00 1.2462
??
??
??
??
Researching your Manx family history can be a very interesting and rewarding hobby. Trace your roots in the Isle of Man with our helpful of guide.
